DEFINING SKILL
THE ACTIVE MANAGEMENT INDUSTRY


Traditional portfolio analytics attempt to assess manager skill using fund outcomes such as return series and daily positions. Metrics based on these data do provide tremendous insights into how a fund was managed but they do not directly quantify skill. They leave you guessing about who is skilled and who isn’t. Naturally, you want more – metrics that actually describe a manager’s skill and enable you to assess the manager’s likelihood of generating excess returns going forward.
Fund returns reflect the combined effects of expert judgment, investment processes, and unpredictable market dynamics (luck). The two elements managers have control over are their expert judgment and investment processes. And that is what skill is about – judgment together with processes that lead to alpha generating decisions. The more effective the manager’s judgement and processes the more skilled the manager. It’s that straightforward.

MANAGER SKILL = EXPERT JUDGMENT + INVESTMENT PROCESSES
XX are many variations of passages of lorem ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised words which don't look even slightly believable. If you are going to use a passage of Lorem Ipsum, you need to be sure there isn't anything embarrassing hidden in the middle of text.
Self-contained, state-of-the-art time clock
Scalability of up to 500 employees per time clock
The ability to connect up to 32 time clocks
Employee self-enrollment
Payroll integration
Built-in backup camera to verify failed punches
There are many variations of passages of lorem ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised words which don't look even slightly believable. If you are going to use a passage of Lorem Ipsum, you need to be sure there isn't anything embarrassing hidden in the middle of text.
Self-contained, state-of-the-art time clock
Scalability of up to 500 employees per time clock
The ability to connect up to 32 time clocks
Employee self-enrollment
Payroll integration
Built-in backup camera to verify failed punches
There are many variations of passages of lorem ipsum available, but the majority have suffered alteration in some form, by injected humour, or randomised words which don't look even slightly believable. If you are going to use a passage of Lorem Ipsum, you need to be sure there isn't anything embarrassing hidden in the middle of text.
Self-contained, state-of-the-art time clock
Scalability of up to 500 employees per time clock
The ability to connect up to 32 time clocks
Employee self-enrollment
Payroll integration
Built-in backup camera to verify failed punches
GET THE LATEST FROM SKILL VERSUS LUCK
SKILL VERSUS LUCK © COPYRIGHT 2026